Which of the following is an example of an externality?
a. cigarette smoke that permeates an entire restaurant
b. a flu shot that prevents a student from transmitting the virus
c. a beautiful flower garden outside the county courthouse
d. All of the above are examples of externalities.
d
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Suppose a bank has $8 million in deposits and a reserve ratio of 20 percent. Its required reserves are
A) $40,000. B) $400,000. C) $1,600,000. D) $16,000,000.
Microeconomics is the study of topics such as national production and unemployment
Indicate whether the statement is true or false
When the price of tortilla chips rose by 10 percent, the quantity of tortilla chips sold fell 4 percent. This indicates that the demand for tortilla chips is
A) inelastic. B) perfectly inelastic. C) elastic. D) unit elastic.
One reason that economists encourage free trade is that
A) it encourages a more rapid spread of technology. B) it allows us to exploit the workers of less developed countries. C) we can sell more goods. D) it increases our capital stock.